May 30, 2016 Volume xxii, #22

“Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.”
—Steve Jobs (inventor, IT entrepreneur, and co-founder of Apple Computers, 1955-2011)

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Lowe’s to evaluate role of various operations in its newly expanded network

TORONTO — Only two days into his new job as the head of the unified Lowe’s/RONA business, Sylvain Prud’homme admits that a lot of questions still don’t have answers. “There’s a lot we need to figure out in the first 30 days,” he says. That includes deciding what the Lowe’s office in Toronto will look like, who will stay, and who will replace him personally to run the Lowe’s business there.

That someone may or may not come from within the Lowe’s or RONA ranks. And they may or may not be in charge of a separate buying team in Toronto, “but this is a top priority we have to address right now.”

The lease at the current office is due to expire soon, as well, further complicating the future of the Toronto operation. However, Prud’homme says the office will not move to Lowe’s Canada’s new distribution centre in Milton, Ont. It’s just too far away from the current location and would be too much of a disruption for the team. “We’re looking for something more central than Milton.”

Another key asset of RONA is the Ace Canada distribution facility in Winnipeg (formerly TruServ Canada). “It’s a part of this support for the independent dealers that we have. The exact role will be defined in consultation with Ace.” Will the Winnipeg DC remain part of that support? “I’ll be honest. I don’t know the role of all the DCs yet.”

Prud’homme points out that Lowe’s and RONA were competitors right up until May 20, when the acquisition closed. “As a result, there are lots of unknowns. That’s why it’s going to take a while.”

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Lowe’s Canada president outlines RONA consolidation strategy

BOUCHERVILLE, Que. ― Lowe’s is planning a “gradual evolution” at RONA after closing its acquisition of the larger Canadian retailer, according to the Canadian Press. “It’s not something that will happen overnight,” Lowe’s Canada CEO Sylvain Prud’homme told a press conference at RONA’s headquarters.

“[Consumers] will see some changes in the early stages, but I think it’s going to come to a point where early 2017 is probably going to be where you are going to see some major changes.” Those changes will include ramped-up e-retail offerings and the roll-out of appliances in some RONA stores. Prud’homme stressed that Lowe’s can lend its expertise to enhance the customer experience within the RONA stores.

In the meantime, Lowe’s will focus on building brand awareness in the Canadian market and retaining the existing RONA banners. These include Dick’s Lumber, Marcil, Reno-Depot, and the Ace brand, to which Lowe’s holds the license in Canada. The latter will be part of a strategy to continue supporting independent dealers across the country.

“We are going to make sure that we have the proper big box store in Quebec,” said Prud’homme. “It doesn’t mean at this point that they will be branded Lowe’s.” In fact, he doesn’t think the Lowe’s name will even be rolled out at all in Quebec.

HARDLINES’ own intrepid Editor Michael McLarney told Report on Business that Lowe’s is likely looking to emulate Home Hardware’s success in establishing brand recognition. “Home Depot may have the biggest sales, but Home Hardware still has the biggest brand awareness,” he said.

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Two years in, Slegg remains a good fit for WSB Titan

VAUGHAN, Ont. — Slegg Lumber is a leading home centre chain on Vancouver Island. While it’s a major supplier to the area’s contractors, it has a retail face, something that its owner WSB Titan lacks.

WSB Titan is the giant commercial drywall operation headquartered just north of Toronto. According to Doug Skrepnek, one of the principals of WSB Titan, and president of Watson Building Supplies, the acquisition in 2014 of Slegg Lumber, with 11 retail locations and a door plant, was part of an ongoing growth strategy for the giant gypsum dealer. Last year, Titan also became an equity partner in BC Ceiling Systems, a West Coast distributor with locations in Vancouver, Richmond, and Langley, B.C., and in Calgary. 

But the traditional building centre business that Slegg represents has been paying off. “The Slegg business on the island is similar, but different,” says Skrepnek. Even though Slegg has the DIY aspect, he explains, it is “very customer-centric with a good base of large contractors, alongside the retail. We’re dealing with the biggest contractors in the island. That’s its niche—and that’s its alignment with Titan.”

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Disappointed with sales, Canadian Tire pulls urban test store

TORONTO — As hardware retailers struggle to provide a profitable service model for downtown locations in Canadian cities, one street in Toronto has been a lab for a store model that failed, even as another an independent competitor a block away is burgeoning.

Canadian Tire has closed a prototype “urban” Express store, located in the Greektown neighbourhood of Toronto’s east end. The store, which was being watched by head office as a possible prototype for further locations, had been tailored specifically to the home maintenance needs of the inner-city customer when it was installed in 2013. Canadian Tire originally planned to open up to six such stores over the following year, including one in Ottawa, but none materialized.

The associate dealer of the Express store was Peter Oliver, who also operates a full-sized Canadian Tire a few kilometres south in the city’s Leslieville neighbourhood. Faced with high rent typical of an inner-city retail space, the smaller test store was designed utilizing two levels, with an emphasis on convenience and décor over building materials.

The store sat on one of the busiest streets in Toronto, renowned for its shops and restaurants. However, according to one source close to the story, a combination of those high costs and the failure of the store’s lower level to draw traffic led to the experiment being terminated.

Meanwhile, a Home hardware store just across the street has expanded, holding its grand opening only weeks after the Canadian Tire store was shuttered. Malcolm Firkser took over an existing Home Hardware after the current owner decided to retire. He then moved the store a few doors down and nearly doubled the size. Commenting on his erstwhile competition, he says that factors such as higher rents across the road on the south side of the street contributed to the Canadian Tire store’s demise.

Meanwhile, his own store is performing well. “Location, location, location,” Firkser insists. “This store has been busy from day one. We’re 35% over projection.”

A long-time Home Hardware dealer, Firkser has operated successfully in an urban environment for decades. He already has three other stores in Toronto, including one at Sunnybrook Plaza, in the city’s mid-town. “It was the very first suburban strip mall in Canada,” he notes.

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CLASSIFIED ADS

Sales Representative North Saskatoon

Sherwin-Williams is hiring a Sales Rep in N. Saskatoon. This position is responsible for increasing sales and profit by growing key, targeted independent dealers within an assigned territory.

The position will service and grow existing customers; develop and implement business plans, oversee program implementation and develop customer relationships to expand product offerings. The sales representative will also be
responsible to grow the business through prospecting new customers, presenting sales opportunities, product training and CRM utilization.

- This position will cover the following geography: Northern Saskatchewan
- Candidate must live within the geography/territory stated above
- Travel % = 60%
- 2+ years of outside sales experience with a proven track record of sales success. Preferred experience selling to independent paint dealers,
co-op’s/hardware stores, distributors, contractors or architects.

Please state "to apply for this position visit http://careers.sherwin-williams.com/careers/openings/, click on Careers@Sherwin-Williams and search req # 16000668".

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